“Fixed rate instrument” definition of section 24J of ITA

“fixed rate instrument” means an instrument in terms of which the amount or amounts payable or receivable is or are or consists of or consist of

 

(a)     a specified amount or specified amounts;

 

(b)     an amount or amounts the method of calculation of which does not involve the application of a variable rate; or

 

(c)     any combination of amounts referred to in paragraph (a) or (b);

“Deferred interest” definition of section 24J of ITA

“deferred interest” includes

 

(a)     any interest where such interest (or any portion thereof), calculated in respect of any accrual period falling within the term of any instrument by applying a constant interest rate throughout the term of such instrument, is not payable or receivable in terms of such instrument within one year from the date of the commencement of such accrual period; and

 

(b)     any interest payable or receivable in terms ol any instrument where such interest is not calculated by applying a constant interest rate throughout the term of such instrument;

“Resale agreement” definition of section 24J of ITA

“resale agreement” means the provision of money (which money shall for the purposes of this section be deemed to have been so provided in the form of a loan) through the acquisition of an asset by any person from any other person subject to an agreement in terms of which such person undertakes to dispose of to such other person at a future date the asset so acquired or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so acquired;

“Date of redemption” definition of section 24J of ITA

“date of redemption”, in relation to an instrument, means-

 

(a)     where-

 

(i)      the terms of that instrument specify a date on which all liability to pay all amounts in terms of that instrument will be discharged; and

 

(ii)     the date so specified is not, in terms of the instrument, subject to change, whether as a result of any right, fixed or contingent, of the holder of that instrument or otherwise,

 

that date; or

 

(b)     where-

 

(i)      the terms of that instrument do not specify a date as contemplated in paragraph (a)(i); or

 

(ii)     that date, if so specified, is subject to change as contemplated in paragraph (a)(ii),

 

the date on which, on a balance of probabilities, all liability to pay all amounts in terms of that instrument is likely to be discharged;

Subsections 2, 3, 4 and 5 of section 24H of ITA

(2)     Where any trade or business is carried on in partnership, each member of such partnership shall, notwithstanding the fact that he may be a limited partner, be deemed for the purposes of this Act to be carrying on such trade or business.

 

(3)     Notwithstanding anything to the contrary in this Act contained, the amount of any allowance or deduction which may be granted to any taxpayer under any provision of this Act in respect of or in connection with any trade or business carried on by him in a partnership in relation to which he is a limited partner shall not in the aggregate exceed the sum of

 

(a)     the amount, whether it consists of the taxpayer’s contribution to the partnership or of any other amount, for which the taxpayer is or may be held liable to any creditor of the partnership; and

 

(b)     any income received by or accrued to the taxpayer from such trade or business.

 

(4)     Any allowance or deduction which has been disallowed under the provisions of subsection (3) shall be carried forward and be deemed to be an allowance or deduction to which the taxpayer is entitled in the succeeding year of assessment.

 

(5)

 

(a)     Where any income has in common been received by or accrued to the members of any partnership or foreign partnership, a portion (determined in accordance with any agreement between such members as to the ratio in which the profits or losses of the partnership are to be shared) of such income shall, notwithstanding anything to the contrary contained in any law or the relevant agreement of partnership, be deemed to have been received by or to have accrued to each such member individually on the date upon which such income was received by or accrued to them in common.

 

(b)     Where a portion of any income is under the provisions of paragraph (a) deemed to have been received by or to have accrued to a taxpayer, a portion (determined as aforesaid) of any deduction or allowance which may be granted under the provisions of this Act in the determination of the taxable income derived from such income shall be granted in the determination of the taxpayer’s taxable income so derived.

“Repurchase agreement” definition of section 24J of ITA

“repurchase agreement” means the obtaining of money (which money shall for the purposes of this section be deemed to have been so obtained by way of a loan) through the disposal of an asset by any person to any other person subject to an agreement in terms of which such person undertakes to acquire from such other person at a future date the asset so disposed of or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so disposed of;